DIGITAL CURRENCY, BITCOINR E T H O R I C S K I L L S P R E S E N T A T I O NF E S S E H A T S E G A Y E M A M OH O C H S H U L E O F F E N B U R GA P R I L 2 0 1 3
CONTENTS• Money and Digital Currency• Cryptocurrency• Bitcoin Concept Statistics and market vlaue What can you do with bitcoins?
MONEY AND DIGITAL CURRENCY• Electronic money that acts asalternative currency• They are not produced bygovernment-endorsed banks• Unlike virtual money they are used intransactions of real goods andservices
CRYPTOCURRENCY• Holder has ownership• No other records kept as to identity of owner• Easy to keep anonymoushttp://en.wikipedia.org/wiki/Digital_currency
CRYPTOCURRENCY ...• Hard or impossible to replace if lost or stolen• Derives trust from mathematical properties• Based on established, trusted cryptographicprimitiveshttp://en.wikipedia.org/wiki/Digital_currency
BITCOIN• Decentralized• Anonymous• Created via peer-to-peer networks• Concept created by „Satoshi Nakamoto“
BITCOIN CONCEPT• Public but anonymous transactions• Based on block chaining of cryptographically-signed transactions• Miners – secure the system
BITCOIN CONCEPT ...• Miners are awardedbitcoins or transactionfees for successfullyfinding blocks• ~21million bitcoinshttps://en.bitcoin.it/wiki/File:Total_bitcoins_over_time_graph.png